Andrea Ordanini

Crowd‐funding: transforming customers into investors through innovative service platforms

Purpose – The purpose of this paper is to analyze the emerging crowd‐funding phenomenon, that is a collective effort by consumers who network and pool their money together, usually via the internet, in order to invest in and support efforts initiated by other people or organizations. Successful service businesses that organize crowd‐funding and act as intermediaries are emerging, attesting to the viability of this means of attracting investment.Design/methodology/approach – The research employs a “grounded theory” approach, performing an in‐depth qualitative analysis of three cases involving crowd‐funding initiatives: SellaBand in the music business, Trampoline in financial services, and Kapipal in non‐profit services. These cases were selected to represent a diverse set of crowd‐funding operations that vary in terms of risk/return for the investor and the type of payoff associated to the investment.Findings – The research addresses two research questions: how and why do consumers turn into crowd‐funding ...

Service Innovation Viewed Through a Service-Dominant Logic Lens: A Conceptual Framework and Empirical Analysis

Research to date on service innovation is rooted primarily in traditional new product development focusing on tangible goods. In this article, the authors invoke insights from the emerging service-dominant logic (SDL) perspective and propose a conceptual framework for investigating the antecedents and consequences of service innovation. They then develop a set of hypotheses pertaining to potential predictors of two distinct facets of service innovation (volume and radicalness) and the impact of the latter on two measures of firm performance (revenue growth and profit growth). They test their proposed model using data from a sample of luxury hotels and find that (a) collaborating with customers fosters innovation volume but not radicalness (and vice versa for collaborating with business partners); (b) a firm’s customer orientation—both directly and in interaction with innovative orientation—contributes to innovation radicalness; (c) collaborating with contact employees enhances both innovation volume and radicalness; (d) the use of knowledge integration mechanisms contributes to innovation radicalness (but not volume); and (e) both innovation outcomes have significant but somewhat different effects on the two performance measures. They discuss the theoretical and managerial implications of their findings and conclude with the study’s limitations and directions for further research.

When the Recipe Is More Important Than the Ingredients A Qualitative Comparative Analysis (QCA) of Service Innovation Configurations

Service innovation is a primary source of competitive advantage and a research priority. However, empirical evidence about the impact of innovativeness on new service adoption is inconclusive. A plausible explanation is that service innovation has thus far been studied using new product frameworks that do not fully capture the complexity of new service assessments by customers. We propose a different, holistic framework, which posits that new service adoption does not depend on individual service attributes, but on specific configurations of such attributes. We investigate this framework in a luxury hotel service context, using qualitative comparative analysis, a set-membership technique that is new to service research and suitable for configuration analyses. Results confirm that individual service attributes have complex trade-off effects and that only specific combinations of attributes act as sufficient conditions for new service adoption. Moreover, the composition of such combinations differs according to the different coproduction requirements. Our findings contribute to managerial practice by providing new insights for improving the service-development process and the launch strategy for new services. They also augment extant service knowledge by demonstrating why interdependencies among various innovation attributes are important to consider for gaining an accurate understanding of new service adoption.

Measuring the digital divide: a framework for the analysis of cross-country differences

This article proposes a new model for measuring the digital divide within a set of countries or geographical areas. Starting from a series of elementary indicators the methodology groups these indicators into six factors of digitalization and, subsequently, aggregates the factors in a synthetic index called the synthetic index of digitalization. The dispersion in the distribution of the synthetic indexes of digitalization constitutes the measure of the digital divide. This method is based upon a measurement approach, which is different from the ones previously developed, since it uses principal components analysis for aggregating the variables and avoids many of the problems and limits shown by existing models. In the article an application of the methodology is provided within a set of ten developed countries for 2000 and 2001. The measurement framework for the digital divide presented here reveals new policy implications for public institutions and highlights opportunities and risks for managers working in the ‘digital economy’ environment.

Consumption Patterns, Digital Technology and Music Downloading

Abstract As today’s digital technologies modify the ways in which cultural goods are consumed and produced, the analysis of consumption patterns becomes one of the most important activities for producers in the cultural industries. Information on consumers’ behaviour becomes a strategic resource with which to anticipate competitors and improve the fit between supply and demand. This article contains an empirical analysis on the music industry, where analysis of on-line survey results show that music downloading is not a unique phenomenon and consumers are approaching the digital environment in different ways. The presence of these differing consumption profiles entails a deep segmentation strategy, requiring that both sides of the strategy — from selection of artists to promotion and pricing policies — be addressed to deal with this segmentation. Managers working in the cultural industries will have to face fundamental changes associated with the shift to a world without physical artefacts, and will need to be able to predict emerging consumption profiles in advance and prepare mixed strategies to handle the period of transition.

The many moods of inter‐organizational imitation: A critical review

The management literature is paying increasing attention to the phenomenon of imitation. However, there are several gaps in understanding what drives firms imitative behaviors. Furthermore, a fragmented array of disciplinary perspectives has investigated imitation phenomena in the past. This paper reviews the literature on imitation and offers a unifying framework to understand what theory has said about the predictors of imitative behaviors, in terms of purposes, driving forces and target. At the end of the review, two over-arching rationales for imitation seem to emerge: risk reduction and search for effectiveness. Next, the review distinguishes between what drives the general propensity for imitation of a firm and what makes a specific decision more likely to be imitated by the same firm. Implications and indications for future research are offered in the final section.

How does the application of an IT service innovation affect firm performance? A theoretical framework and empirical analysis on e-commerce

Understanding the effects of IT-related innovations on firm performance is crucial for businesses. Extant research has investigated the implications of IT innovations and provided some important findings, but the varied theoretical approaches have produced results that are often ambiguous: thus there is a need to examine the process further. We attempted to provide a systematic, theoretically informed framework for understanding the conditions that may enhance (or hinder) the potential of IT innovations in a sample of firms. Our model included business and IT resources, both internal and external, that may influence the performance of firms which have applied a pervasive IT service innovation: e-commerce. Our empirical test of the model used a research design that takes into account time-lag effects. The model explained more than half of the variance in the performance of IT innovators and offered several explanations for why some firms succeeded in implementing IT service innovations while others did not. Several theoretical and managerial implications result from these findings.

Market Orientation, Internal Process, and External Network: A Qualitative Comparative Analysis of Key Decisional Alternatives in the New Service Development*

Scholars from different disciplines acknowledge the importance of studying new service development (NSD), which is considered a central process for sustaining a superior competitive advantage of service firms. Although extant literature provides several important insights into how NSD processes are structured and organized, there is much less evidence on what makes NSD processes successful, that is, capable of contributing to a firms sales and profits. In other words, which are the decisions that maximize the likelihood of developing successful new services? Drawing on the emerging “service-dominant logic” paradigm, we address this question by developing an NSD framework with three main decisional nodes: market orientation, internal process organization, and external network. Using a qualitative comparative analysis technique, we discovered combinations of alternatives that maximize likelihood of establishing a successful service innovation. Specifically, we tested our NSD framework in the context of hospitality services and found that successful NSD can be achieved through two sets of decisions. The first one includes the presence of a proactive market orientation (PMO) and a formal top-down innovative process, but the absence of a responsive market orientation. The second one includes the presence of both responsive and PMO and an open innovation model. No single element was a sufficient condition for NSD success, though PMO was a necessary condition. Several implications for theory and decision-making practice are discussed on the basis of our findings.

Strategic capabilities and internet resources in procurement

Purpose – This paper seeks to adopt a resource‐based approach to investigate the link between procurement capabilities, internet resources, and performance. It aims to cover two gaps in the operations management literature: the missing links between procurement capabilities and the performance of a firm, and the role of internet resources in shaping such links.Design/methodology/approach – After the identification of two key capabilities in procurement and the introduction of internet resources, the relationships with performance are empirically tested in a sample of 93 firms in the textile and clothing industry in Italy. Data were analysed using a partial least‐squares technique and main and interaction effects were investigated.Findings – First, process efficiency and process integration capabilities provide a significant (and equally important) contribution to firm performance, but there are no complementary effects between them. Second, and contrary to expectations, the internet has been found to enha...

Infomediation and competitive advantage in b2b digital marketplaces

Digital platforms are radically transforming the organisational structure of value chains and the way companies organise their business. Because they are so complex, b2b networks are mainly involved in this process and new infomediaries are emerging to reorganise company relations. Apart from several articles, there has been little meaningful debate regarding the driving forces behind these changes. This paper focuses on the competitive role of these new actors, and provides a conceptual framework which aims to show how these new virtual infomediaries are affecting strategic company resources and reshaping the dynamics of competition. We present three European cases of b2b digital marketplaces to illustrate how competitive infomediation works.